(a) Consider the following information for a bank: Assets 220mil, duration of 1.397years. Liabilities 200mil, duration of 0.5535 year. (i) What is the bank's leverage-adjusted duration gap? (in years, answer in 4 decimal places) (ii) Briefly explain the bank's interest rate exposure from your calculation in (a). (iii) If interest rates rise by 1%, what is the new market value of the bank's equity? (answer in mil) (3 marks) (b) A bank is looking to hedge its interest rate risk with a $100mm notional long put option (a FLOOR) of 10%, paying premium of 0.5% of face value. (i) If interest rate falls to 8%, what is the net profit? (answer in mil) (ii) What kind of balance sheet should you expect the bank to have when buying this put option as a hedge